If you are like many investors, recent market declines, continuing economic uncertainty and growing questions about corporate credibility may have shaken your faith in the stock market. Instead of letting your fears get the best of you in difficult times, it's important to keep yourself focused. Get back to basics. Return to the core principles that should guide every investment decision.

Core investment principles can be the foundation for a sound financial plan. Here is a brief look at six core principles that can help guide your decisions in today's market.

Have a plan. This may seem obvious, but there are many investors who have not taken this basic step. Are you able to write down your long-term financial goals in detail? In an uncertain market it's crucial to stay focused. Having a plan will not only remind you of your goals, but it will also outline the steps to help you achieve them.

Invest for the long-term. Don't let your fears about short-term volatility hurt your chances of achieving your long-term goals. Over the past 50 years, the economy has only seven cumulative years in recession with the remaining 43 years - or 86% of the time - spent in expansion. If you believe your plan is sound, stick with it. (Source for this percentage is the National Bureau of Economic Research, Ibbotson Associates.)

Diversify your portfolio. Now is a good time to look at your portfolio and ensure that you have exposure to a variety of investment classes. Why? Different asset classes often react differently to the same market conditions. When one asset class is performing poorly, another may be performing well. Having exposure to a broad selection of investments can often help smooth out periods of volatility.

Invest in equities. As you look to the future, one of the most important considerations may be the impact of inflation on your assets. Over time, rising prices can eat away at your buying power, making it harder and harder to make ends meet.

Historically one investment class has offered the growth potential and opportunity for increasing income that can help you stay ahead of inflation - stocks. Over the long term, stocks have outperformed every other asset class by a significant margin, according to Ibbotson Stocks, Bonds, Bills and Inflation.

Invest with discipline. It's a simple idea: Invest the same amount of money in the same mutual funds, on the same regular schedule over a long period of time. This strategy is commonly called "dollar cost averaging." The results can be quite interesting.

As mutual fund prices fluctuate, your regular investment purchases more shares when the price is low and fewer shares when the price is high. In the end you may end up paying less per share. In short, you can turn volatility into an opportunity to buy at lower prices.

Dollar cost averaging does not ensure a profit or protect against losses in declining markets. You should consider your ability to continue to invest during periods of declining markets.

Get professional advice. This is one of the best steps you can take right now. When you work with an advisor, you have someone with an objective opinion looking out for your best interests. Your advisor can help you take the emotion out of your investment decisions and can keep you focused on your long-term goals.

For more information on any of these six ideas for managing volatile markets, be sure to contact your financial advisor. You'll discover that even when the market is volatile it pays to stay focused on your long-term goals.

Alan S. Friedlander is a registered securities representative. His financial practice specializes in serving families and family-owned businesses with investment and asset management advice along with mortgage financing. He pays particular attention to helping his clients maintain a well-structured investment approach while helping lower their tax bill. Mr. Friedlander is available for a free initial consultation. He can be reached at 847/855-4888 or at alfriedlander@yahoo.com.